Finance and Economic Development Minister Mthuli Ncube has said the government will rely on locally generated revenue to sustain the health sector following the withdrawal of key external funding, reported <a href="https://www.herald.co.zw/zim-turns-to-local-resources-to-fund-health-sector-amid-us-funding-withdrawal/">The Herald</a>.
Recently, the United States suspended funding for vital health programs, including HIV interventions under the President’s Emergency Plan for AIDS Relief (PEPFAR).
PEPFAR, the leading funder of HIV programs, had committed US$210 million to Zimbabwe in 2024 and an additional US$200 million for the period from October 2024 to September 2025.
To offset this loss, Ncube said that the government plans to use “sin taxes”—levies on alcohol, cigarettes, fast food, and sugary beverages—to support the health sector. He said:
<blockquote>
We have quite a portfolio of various taxes that will be applied towards the budget needs of the health sector.
Of course, the actions taken by certain donors to withdraw funding put pressure on us, but with the resources raised from these sin taxes, we believe we can address some of the challenges.
This is a continuous budget implementation process. Where there is a need, we provide funding. I am pleased that we have a dedicated revenue stream from sin taxes that we can apply specifically to the health sector.
</blockquote>
It remains unclear how much revenue is generated through sin taxes and the AIDS Levy, and whether these funds can fill the gap left by the suspension of international aid, especially given Zimbabwe’s economic challenges and high disease burden.
Shortly after taking office in January, U.S. President Donald Trump withdrew the U.S. from the World Health Organization (WHO) and suspended foreign assistance for 90 days as part of a shift in foreign aid policy.
It is uncertain what will happen after the 90 days, including whether U.S. funding will be halted or resumed, and under what conditions.

Pindula News

Zimbabwe is facing a problem because the United States is no longer giving money to help with healthcare. To make up for this, the government is going to tax things like alcohol, cigarettes, and fast food to get money for healthcare. The US had given a lot of money before, and now that it's gone, Zimbabwe needs to find other ways to pay for important programs, like those that help with HIV. It's not clear how much money these new taxes will bring in, or if it will be enough to help with all the health problems in Zimbabwe.

Zimbabwe Turns To "Sin Taxes" To Fund Health Sector After U.S. Cuts Aid

By Gaylord Munemo
Zimbabwe’s development landscape has been rocked by the imminent removal of USAID support, which might undo hard-won progress in economic stability, food security, and public health.
The threat of USAID’s withdrawal has exposed the institutional flaws and systemic vulnerabilities that have long impeded Zimbabwe’s pursuit of sustainable development, as the nation’s delicate development ecosystem teeters on the verge of collapse.
The expansion of antiretroviral therapy (ART) coverage in Zimbabwe has been made possible in large part by USAID’s flagship program, the President’s Emergency Plan for AIDS Relief (PEPFAR).
By 2023, about 1.2 million people which is more than 90% of the nation’s ART-eligible population had received ART support from PEPFAR.
Withdrawing USAID funding would probably cause ART coverage to drop sharply, endangering the lives of hundreds of thousands of Zimbabweans living with HIV/AIDS.
According to USAID’s Demographic and Health Surveys (DHS) program, Zimbabwe’s HIV prevalence rate has declined from 14.3% in 2010 to 12.9% in 2020. However, this progress is fragile and reversible. 
The HIV/AIDS Program Index (HAPI), a composite measure of HIV/AIDS program performance, would likely decline precipitously in the absence of USAID funding.
This, in turn, would exacerbate the HIV/AIDS epidemic, undermining Zimbabwe’s progress towards achieving the UNAIDS 95-95-95 targets.
In regards to maternal and child health, maternal mortality rates decreased from roughly 614 deaths per 100,000 live births in 2010 to about 462 deaths per 100,000 live births in 2024 as a result of USAID’s efforts.
Thanks to USAID’s assistance with vaccine campaigns, the immunization coverage for children under one-year-old rose from over 80% in 2013 to over 90% by 2023.
Zimbabwe’s food security situation would be significantly impacted if USAID aid were to be discontinued.
In Zimbabwe, increasing agricultural productivity, expanding market access, and improving nutrition outcomes have all been made possible by USAID’s Feed the Future (FtF) program.
More than 1.5 million metric tons of maize have been produced thanks to FtF as of 2022, surpassing the nation’s production goals.
However, Zimbabwe’s agricultural sector would probably see a sharp drop in production without USAID financing, endangering the nation’s food security position.
The Global Hunger Index (GHI) would likely deteriorate in the absence of USAID funding. Zimbabwe’s GHI score has improved from 19.1 in 2010 to 15.3 in 2020, indicating a moderate level of hunger.
However, a withdrawal of USAID funding would likely reverse this progress, exacerbating hunger and malnutrition in Zimbabwe and likely affecting the Human Development Index (HDI) which had improved from 0.51 in 2010 to 0.57 in 2020, indicating a moderate level of human development.
Can the Government manage without USAID? With a sizable amount of the budget going towards debt servicing and ongoing expenses, Zimbabwe’s budgetary space is severely limited.
The nation’s capacity to raise domestic funds to cover USAID’s funding shortfall would be hampered by its budget deficit.
Inadequate technical know-how, ineffective mechanisms, and a lack of human resources define Zimbabwe’s institutional capacity to oversee and carry out development initiatives.
Ineffectiveness, corruption, and a lack of transparency afflict the nation’s public financial management (PFM) systems, which are essential for efficient resource allocation and use.
Moreover, Zimbabwe’s development frameworks and policies, such as the Zimbabwe National Development Strategy (NDS1), lack clear prioritization, coordination, and resource allocation mechanisms.
Achieving sustainable development results depends on Zimbabwe’s capacity to move from a donor-dependent to a self-sustaining development model, according to USAID’s Development Assistance Framework (DAF).
Failure to solve the aforementioned issues, however, will make it more difficult for the nation to fill the financing shortfall that USAID might leave in 2025, endangering development achievements and threatening the nation’s chances for sustainable development.

The USA is thinking of stopping giving money to Zimbabwe. This will affect the country's progress in helping people with HIV, keeping kids healthy, and growing enough food. The USA helps Zimbabwe with medicine, vaccines, and farming. Without the USA's help, many people will suffer. Zimbabwe needs to find ways to get money on its own. If they cannot, they might go back to struggling like before. It's important for Zimbabwe to learn how to take care of itself without always needing help from other countries.

Beyond The Edge of Oblivion: The Threat Of USAID's Withdrawal

The National AIDS Council (NAC) said that Zimbabwe has enough antiretroviral (ARV) drugs for the 1.2 million people on antiretroviral therapy (ART), despite the U.S. freezing aid through USAID.
This freeze is part of broader cuts to the President’s Emergency Plan for AIDS Relief (PEPFAR) and other international funding.
PEPFAR has been the largest funder of Zimbabwe’s HIV response, committing US$210 million for 2024 and US$200 million from October 2024 to September 2025.
In an interview with <a href="https://www.sundaymail.co.zw/zim-has-enough-arvs-in-stock-nac">The Sunday Mail</a>, NAC CEO Dr. Bernard Madzima reassured people on ART not to panic, saying the country has sufficient ARVs to meet current needs. Said Madzima:
<blockquote>
I want to assure the nation and everyone that there are enough ARVs in the country. At this stage, there is no need to panic. Anyone who needs ARVs needs to go to the facility where they collect their ARVs and they will get services.
This current scenario, at this stage, has not affected the service delivery of ARVs. But as a country, we need strategies to deal with the possible scenarios in the future so that we cover that gap, and that gap should not lead to anyone not getting treatment.
And I am sure you read from the Central Government that as a country we stand by prioritising health and making sure that anyone who needs treatment will get the treatment that they need.
</blockquote>
Madzima stressed the importance of continuing to mobilise resources to ensure the success of Zimbabwe’s HIV prevention programs.
He noted that funds from the AIDS levy, a 3% tax on corporate profits and personal income for HIV/AIDS programs, are “limited.” Said Madzima:
<blockquote>
The AIDS levy is a very limited resource. Remember that part of it is collected in local currency and it’s difficult to then buy things from outside the country.
So, it will not be able to cater to all the shortfalls that will happen in the health sector…
So, we can only stretch it up to a point. It’s not an infinite resource; it’s very limited.
</blockquote>

Zimbabwe has enough ARVs for the 1.2 million people on ART, even though the U.S. froze aid. PEPFAR was a big funder but is now cutting funds. NAC reassured people that there is no need to panic, as there are enough ARVs in the country. The CEO said they will continue to prioritize health and treatment for those in need. However, the funding from the AIDS levy is limited and may not cover all the needs. They need to keep finding ways to support HIV prevention programs to be successful.

"Zimbabwe Has Enough ARVs In Stock"

U.S. Secretary of State Marco Rubio has issued a new waiver allowing humanitarian assistance programs to resume, despite a freeze on foreign aid.
The waiver enables the continuation of existing programs that provide essential medicines, medical services, food, shelter, and other vital assistance. Said Rubio:
<blockquote>
For the purposes of carrying out the President’s Executive Order on Reevaluating and Realigning United States Foreign Aid, I am approving an additional waiver of the pause under the Executive Order on Reevaluating and Realigning United States Foreign Aid and my subsequent direction of January 24, 2025, for life-saving humanitarian assistance during the period of the review.
Implementers of existing life-saving humanitarian assistance programs should continue or resume work if they have stopped, subject to the following directions. This resumption is temporary in nature, and except by separate waiver or as required to carry out this waiver, no new contracts shall be entered into.
1.  (a) For purposes of this waiver, life-saving humanitarian assistance applies to core life-saving medicine, medical services, food, shelter, and subsistence assistance, as well as supplies and reasonable administrative costs as necessary to deliver such assistance.
(b) This waiver does not apply to activities that involve abortions, family planning, conferences, administrative costs other than those covered by 1(a) above, gender or DEI ideology programs, transgender surgeries, or other non-life saving assistance.
(c) Migration and Refugee Assistance (MRA) may only be used to support activities under section 1(a) and for repatriation of third country nationals to their country of origin or safe-third-country.
2. Additional waivers or exceptions for humanitarian assistance not covered by this waiver may be sought through the Director of Foreign Assistance at the Department of State. Implementing partners and NGOs are to work through their U.S. government agency partners on such requests.
</blockquote>

The U.S. has allowed some aid programs to continue despite a freeze on foreign aid. This waiver will help provide essential items like medicine, food, and shelter to people in need. The waiver is temporary and only applies to life-saving assistance, not things like abortions or gender programs. Implementers of existing aid programs can continue their work, but no new contracts can be made. Any other humanitarian assistance not covered by the waiver must be approved by the Director of Foreign Assistance.

U.S. Eases Aid Freeze With Waiver To Resume Humanitarian Aid Programmes

The World Health Organization (WHO) has raised concerns over the U.S. government’s decision to immediately pause funding for HIV programs in low- and middle-income countries.
In a statement, WHO said these programs provide life-saving HIV therapy to more than 30 million people worldwide.
The funding pause, according to WHO, could significantly increase the risk of illness and death for those living with HIV and undermine efforts to prevent transmission within communities and countries.
WHO also warned that if the funding pause is prolonged, it could lead to a rise in new infections and deaths, potentially reversing decades of progress.  The statement reads:
<blockquote>
The World Health Organization (WHO) expresses deep concern about the implications of the immediate funding pause for HIV programmes in low- and middle-income countries.
These programmes provide access to life-saving HIV therapy to more than 30 million people worldwide. Globally, 39.9 million people were living with HIV at the end of 2023.
A funding halt for HIV programmes can put people living with HIV at immediate increased risk of illness and death and undermine efforts to prevent transmission in communities and countries.
Such measures, if prolonged, could lead to rises in new infections and deaths, reversing decades of progress and potentially taking the world back to the 1980s and 1990s when millions died of HIV every year globally, including many in the United States of America.
For the global community, this could result in significant setbacks to progress in partnerships and investments in scientific advances that have been the cornerstone of good public health programming, including innovative diagnostics, affordable medicines, and community delivery models of HIV care.
We call on the United States Government to enable additional exemptions to ensure the delivery of lifesaving HIV treatment and care.
<h2>PEPFAR’s legacy and current risks</h2>
The United States President’s Emergency Plan for AIDS Relief (PEPFAR) has been a flagship initiative of the global HIV response since its establishment over 20 years ago.
The current funding pause for PEPFAR will have a direct impact on millions of lives that depend on the predictable supply of safe and effective antiretroviral treatment.
PEPFAR works in over 50 countries around the world. Over the past two decades, PEPFAR funding has saved more than 26 million lives.
Currently, PEPFAR is providing HIV treatment for more than 20 million people living with HIV globally, including 566,000 children under 15 years of age.
Over the past year, PEPFAR and partners, including WHO, have been working on sustainability plans with countries for greater country ownership and reduced donor support up to and beyond 2030.
A sudden and prolonged stop to programmes does not allow for a managed transition and puts the lives of millions at risk.
WHO is committed to support PEPFAR and other partners, as well as national governments, in managing change processes effectively to minimize the impact on people living with HIV.
</blockquote>

The World Health Organization is worried because the U.S. government paused funding for HIV programs in other countries. These programs help 30 million people get life-saving HIV therapy. The pause could make more people sick or die and might lead to more new infections. Without funding, progress in fighting HIV could go back to the 1980s and 1990s when many people died from the virus. The WHO wants the U.S. to keep supporting HIV programs to save lives. The President's Emergency Plan for AIDS Relief (PEPFAR) is also affected by the funding pause, putting millions of lives at risk.

U.S. HIV Funding Pause Risks Reversing Decades Of Progress, WHO Warns

Finance Minister Mthuli Ncube expressed concern on Wednesday that a US withdrawal from the World Health Organisation could lead to aid cuts for countries like Zimbabwe, which are heavily affected by HIV/AIDS.
President Donald Trump signed an executive order for the US withdrawal after his second-term inauguration on Monday.
During an online briefing from Davos, where he was attending the World Economic Forum, Ncube said the withdrawal could signal cuts in health aid to countries like Zimbabwe. He said:
<blockquote>
Any country with an HIV/Aids challenge will be impacted. This is a concern, a fear we are expressing.
</blockquote>
According to <a href="https://www.reuters.com/business/healthcare-pharmaceuticals/zimbabwe-fears-us-withdrawal-who-will-hit-hivaids-programmes-2025-01-22/">Reuters</a>, Zimbabwe receives over US$200 million annually from the US President’s Emergency Plan for Aids Relief (PEPFAR).
Since 2006, the US government has given Zimbabwe over US$1.7 billion to strengthen health systems and support people living with HIV, according to the US embassy in Harare.
PEPFAR contributes nearly US$90 million annually to support salaries and incentives for healthcare workers, as well as funding HIV and viral load testing, prevention, cervical cancer screening, and tuberculosis treatment.
Zimbabwe is struggling to fund its public health system. The government introduced a sugar tax on beverages last year to raise funds for cancer treatment. This year, they introduced another tax on fast food. Said Ncube:
<blockquote>
We need to scale up our funding for health. The earmarked taxes should be directed towards health as we build our capacity to fill the gap should any funding recede.
</blockquote>

The Minister of Finance in Zimbabwe is worried that the US leaving the World Health Organization might stop funding for HIV/AIDS programs in Zimbabwe. President Trump signed an order to withdraw the US from the WHO. Zimbabwe gets a lot of money from the US to help with HIV/AIDS. Since 2006, they got over $1.7 billion. They use the money for healthcare workers and testing for diseases. Zimbabwe has some taxes to help with healthcare, but they might need more money if the US stops giving them help. They are trying to find ways to fill the gap in funding.

Mthuli Warns U.S. Withdrawal From WHO Could Hurt Zimbabwe's HIV/AIDS Programmes

United States Ambassador to Zimbabwe Pamela Tremont has sought to reassure the public regarding concerns over a potential condom crisis in the country, following the announcement that the US President’s Emergency Plan for AIDS Relief (PEPFAR) will end its 20 years of funding.
Gertrude Ncube, the HIV Prevention Coordinator at the Ministry of Health and Childcare, recently said that funding for the purchase of “maDeMbare” condoms will cease in 2026, attributing this decision to donor fatigue. Said Ncube:
<blockquote>
As we are here gathered as government, civil society and partners, let us know that our condom funding is at stake and PEPFAR has already told us that from 2026, there won’t be any condoms funded by them.
We need as a country to look at how best we mobilise even domestic funding actually to fund condoms.
</blockquote>
“Madembare” refers to a type of condom distributed for free, particularly in areas with high sexual activity, to help prevent HIV/AIDS and other sexually transmitted infections (STIs).
These condoms are known for their strong, often unpleasant smell, which has led to some users rejecting them.
With PEPFAR accounting for 77% of all condom funding in Zimbabwe, its withdrawal could have a detrimental effect on efforts to combat the spread of STIs in the country.
However, during a recent press event at the US Embassy’s postponed Independence celebrations, Ambassador Tremont assured journalists that discussions are underway with their partners to ensure the continuation of their programmes. Said Tremont (via <a href="https://www.newzimbabwe.com/boost-for-hiv-fight-as-us-ambassador-reveals-presidential-plan-is-engaging-partners-to-continue-programme/">NewZimbabwe.com</a>):
<blockquote>
PEPFAR is not exiting in the foreseeable future. It was an emergency response so we are looking to our PEPFAR partners to start looking at the sustainability of the programme.
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

The US Ambassador to Zimbabwe, Pamela Tremont, is trying to calm fears about a possible condom shortage in the country. The program that funds condoms is ending after 20 years, but discussions are happening to keep it going. "Madembare" condoms, which are smelly but important for stopping HIV/AIDS, might be affected. The US is a big part of funding condoms in Zimbabwe, so it's important to find a solution. Don't worry, says Ambassador Tremont, they are working on keeping the program going for now.

US Ambassador Pamela Tremont Responds To Fears Of Condom Crisis In Zimbabwe

The Maximizing Options to Advance Informed Choice for HIV Prevention (MOSAIC) consortium is introducing long-acting injectable cabotegravir for pre-exposure prophylaxis (CAB for PrEP) alongside oral PrEP and the PrEP ring in five African countries.
MOSAIC is a five-year (2021-2026) global project funded by the U.S. President’s Emergency Plan for AIDS Relief (PEPFAR) through the U.S. Agency for International Development (USAID) and is led by FHI 360.
MOSAIC’s primary goal is to empower adolescent girls, young women, and other women to prevent HIV by accelerating the introduction and scale-up of new and emerging biomedical prevention products.
Proposed countries for MOSAIC’s work include Kenya, South Africa, Zambia, Zimbabwe, Eswatini, Lesotho, Uganda, Namibia, and Nigeria.
As reported by <a href="https://spikedmedia.co.zw/fhi-360-and-partners-introduce-injectable-hiv-prevention-method-as-part-of-research-study/">Spiked</a>, South Africa and Zimbabwe are the first to welcome CAB for PrEP following regulatory approval and the arrival of the donated product on site.
The rollout is part of Catalyzing Access to New Prevention Products to Stop HIV (CATALYST), a three-year, multi-country implementation study that aims to assess the delivery of multiple PrEP methods to an estimated 11,000 HIV-negative participants.
The study is taking place across 28 public health service delivery sites supported by PEPFAR in Kenya, Lesotho, South Africa, Uganda and Zimbabwe. As of March 31, nearly 4,000 participants have been enrolled.
Dr. Atul Gawande, assistant administrator for global health at USAID, said:
<blockquote>
USAID’s commitment to cutting-edge research and development is advancing innovative solutions to some of the world’s greatest health challenges. We see that with CATALYST.
This study is supporting women and girls by expanding their options of methods for HIV prevention and by producing findings that will guide the scale-up of these prevention methods across the African continent.
</blockquote>
Dr Kristine Torjesen, director of science facilitation at FHI 360, said:
<blockquote>
CATALYST is the largest study of its kind and represents a locally-led, youth-focused implementation project in which participants have the opportunity to be among the first to learn about and try new PrEP methods.
They will also make their voices heard in how PrEP is rolled out in their communities, which is critical given that adolescent girls and young women continue to bear the brunt of the HIV epidemic in many places.
</blockquote>
The study is being conducted in two stages. Between May and October 2023, stage 1 launched across all sites in all five countries and includes tenofovir-based oral pills and the dapivirine ring (PrEP ring).
The second stage begins once CAB for PrEP has been approved by the national regulatory authority in each country and the donated product is available on-site.
Participants will be followed for one to three years to collect information about how they choose, use, switch between and like the offered PrEP methods.
The study results will offer valuable evidence to guide the future expansion and sustainability of HIV prevention options, ultimately contributing to a transformative impact on HIV prevention.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

FHI 360, A Global NGO And Partners Introduce Injectable HIV Prevention Method As Part Of Research Study

The United States of America, through the U.S. President’s Emergency Plan for AIDS Relief (or PEPFAR), is using at least $150,000 USD to help with COVID-19 prevention measures in Zimbabwe specifically targeted at people living with HIV.
In a statement on Tuesday, the US Embassy in Zimbabwe said the PEPFAR funding includes the purchase of soap, buckets, hand washing stations and hand sanitizer for supported facilities, and the reproduction of COVID-19 communication materials.
The products will be share at supported facilities and through faith and community networks around the country.
The activities will be carried out by three PEPFAR clinical implementing partners, namely, the Organisation for Public Health Interventions and Development (OPHID), International Training and Education Center for Health (I-TECH) and the Zimbabwe Association of Church-Related Hospitals (ZACH).
The $150,000 USD funds are in addition to the United States Agency for International Development (USAID)’s $470,000 contribution to the World Health Organization to support Zimbabwe’s fight against COVID 19, announced on March 27, 2020.
Meanwhile, the United States has provided over $1 billion in health assistance to strengthen health systems in Zimbabwe since 1980.
<h4>More: <a href="https://zw.usembassy.gov/united-states-uses-150000-in-pepfar-funding-to-help-with-covid-19-prevention/" rel="noopener noreferrer" target="_blank">US Embassy in Zimbabwe</a></h4>

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